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WARNER & HAWLEY INTRODUCE BILL TO FORCE SOCIAL MEDIA COMPANIES TO DISCLOSE HOW THEY ARE MONETIZING USER DATA

GREENSVILLE/EMPORIA DEPARTMENT OF SOCIAL SERVICES

LOCAL BOARD MEETING

The Greensville/Emporia Department of Social Services Administrative Board will hold its regular meeting Thursday, July 18, 2019, at 3:30 p.m. The meeting will be held at the Greensville/Emporia Department of Social Services located at 1748 East Atlantic Street.

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~ Bipartisan legislation would improve transparency, allow users to understand exactly what data is being collected for profit ~

WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Josh Hawley (R-MO) will introduce the Designing Accounting Safeguards to Help Broaden Oversight And Regulations on Data (DASHBOARD) Act, bipartisan legislation that will require data harvesting companies such as social media platforms to tell consumers and financial regulators exactly what data they are collecting from consumers, and how it is being leveraged by the platform for profit.

“For years, social media companies have told consumers that their products are free to the user. But that’s not true – you are paying with your data instead of your wallet,” said Sen. Warner. “But the overall lack of transparency and disclosure in this market have made it impossible for users to know what they’re giving up, who else their data is being shared with, or what it’s worth to the platform. Our bipartisan bill will allow consumers to understand the true value of the data they are providing to the platforms, which will encourage competition and allow antitrust enforcers to identify potentially anticompetitive practices.”

“When a big tech company says its product is free, consumers are the ones being sold. These 'free' products track everything we do so tech companies can sell our information to the highest bidder and use it to target us with creepy ads,” said Sen. Hawley. “Even worse, tech companies do their best to hide how much consumer data is worth and to whom it is sold. This bipartisan legislation gives consumers control of their data and will show them how much these 'free' services actually cost.”

As user data increasingly represents one of the most valuable, albeit intangible, assets held by technology firms, shining light on how this data is collected, retained, monetized, and protected, is critical. The DASHBOARD Act will:

  • Require commercial data operators (defined as services with over 100 million monthly active users) to disclose types of data collected as well as regularly provide their users with an assessment of the value of that data.
  • Require commercial data operators to file an annual report on the aggregate value of user data they’ve collected, as well as contracts with third parties involving data collection.
  • Require commercial data operators to allow users to delete all, or individual fields, of data collected – and disclose to users all the ways in which their data is being used. including any uses not directly related to the online service for which the data was originally collected.
  • Empower the SEC to develop methodologies for calculating data value, while encouraging the agency to facilitate flexibility to enable businesses to adopt methodologies that reflect the different uses, sectors, and business models.

The DASHBOARD Act is the second tech-focused bill Hawley and Warner have partnered on. The first was Hawley’s Do Not Track Act, which would be modeled after the Federal Trade Commission’s (FTC) “Do Not Call” list and allow users to opt out of non-essential data collection.

 A section-by-section summary of the bill is available here. Bill text is available here.

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